Mutual Learning Exercise : Performance-based funding of university research : Horizon 2020 Policy Support Facility

To support countries in reforming their research and innovation systems, the Directorate-General for Research & Innovation (DG RTD) of the European Commission set up a Policy Support Facility (PSF) under the European Framework Programme for Research & Innovation 'Horizon 2020'. It aims to support Member States and associated countries in improving their national science, technology and innovation systems. This report documents a mutual learning exercise on performance-based research funding systems (PRFS) for universities. Armenia, Austria, Croatia, the Czech Republic, Estonia, Italy, Moldova, Norway, Portugal, Slovenia, Spain, Sweden and Turkey all participated in the exercise, which was supported by a group of five experts. The report reviews wider international experience with PRFS as well as the specific experiences of the participating states. It constitutes a 'handbook' for policy makers and PRFS designers, providing analyses of experience, a discussion of the policy role of PRFS, key parameters of PRFS design, strengths and weaknesses of different 'models' for PRFS design including discussions of peer review, indicators, and how to consider the societal impact of research. It concludes by drawing lessons and making policy recommendations about how and when to design and use PRFS for policymakers and PRFS designers.